Photovoltaic Power Applications in South-Korea For FinSolar Project Aalto University School of Business 9.2.2015 Kim Yukyeong

Retail electricity prices in Korea For Household kWh monthly Fixed rate € + Electricity rate €-ct/kWh < 100 0,33 € 5 201-300 1,28 € 15 401-500 5,84 € 33 > 500 10,35 € 57 Industry & Commercial Depends on the season (summer is higher), usage voltage and capacity price; basic rate per kW (alle 7 €/kW) + electricity rate (alle 10 €-ct/kWh) Market share KEPCO control/manage the whole electric market in Korea Korea Electric Power Corporation, KEPCO

Total capacity of PV & Generation of electricity from PV Total electricity generation capacity v2013 Generated electricity during the v2013 unit MW % GWh PV 1 555 1,8 1 605 0,29 Renewables *9 973 *11,5 21 438 3,86 Total 86 969 100 555 672 Source: Korea Energy Management Corporation Total energy consumption(demand) v2013: 474 849 GWh *annual report IEA-PVPS-2013-Korea

Power stations from renewable energy in Korea 1.2015 Number of power stations Capacity (MW) PV 9 273 1 894,2 Wind 85 641,6 Hydro 153 1 767,0 Others 130 2 095,9 ** Total 9 641 6 398,7 Total capacity from all technology 94 102 **others; tidal, bio, fuel cell … KEMCO (Korea Energy Management Corporation), update 30.1.2015 https://www.renewableenergy.or.kr/spc/stats/powerstation/selectPowerStationList.do

Annually installed PV capacity MW FIT - v2011 RPS v2012 – Approx. 1,2 GW annual report IEA-PVPS-2013-Korea + KEMCO

Feed-in Tariffs program (v2002-2011) Sell electricity directly to KEPCO with fixed price (€-ct/kWh) for 15(20)years Year Period Under 30 kW Under 1 MW Over 3 MW year Rooftop €-ct/kWh Ground mounted 2006 15 57 ? 2008 2010 48 41 33 20 44 37 30 2011 43 35 28 39 32 25 **2015 - ? 24 ** Under RPS program; sell electricity (SMP) directly to KEPCO + sell REC (renewable energy certificate) to the power generation company (REC price 7 €-ct/kWh 9.2014)

National programs Renewable Portfolio Standards (v2012-2022) Mandated requirement that the electricity utility business source a portion of their electricity supplies from renewable energies (company over 500MW) Home Subsidy Program (One Million Green Homes, v2004-2020 ) This program was merged the existing 100 000 rooftop PV system installation program (gov supports some of installation cost, household < 3kW) Building Subsidy program (v2012- Government supports up to 50% of installation cost for PV systems with a capacity below 50 kW (benefited 20MW) Regional Deployment Subsidy program The government supports 50% of installation cost for PV systems owned and operated by local authorities (benefited 71MW) NRE Mandatory Use for Public Buildings The new buildings of public institutions, the floor area over 1 000m2 are obliged to use more than 10% of their total expected energy by the newly installed renewable energy resource systems (up to 30% v2020)

Renewable Portfolio Standards (RPS) Electrical power generation companies (yli 500 MW capacity, total 14 utilities v2014) should supply some portion of electricity from renewables. Need to meet targets for a proportion 2% (v2012) up to 10% (v2022). How? Build their own plant or buy REC(renewable energy certificate). Penalty payments charged for any shortfalls. Required rate, Obligatory supply rate by suppliers vuonna 2012 2013 2014 2015 2016 2017 2018 2020 2022 % 2,0 2,5 3,0 3,5 4,0 5,0 6,0 8,0 10,0 GWh 6 420 9 210 11 579 ? * GWh from PV 276 723 1 353 1 971 - *requirement from Photovoltaic power (until 2015).

*Capacity from renewable (MW) Obligators under RPS program v2014 Companies yli 5MW capacity (NRE plants excluded) 6 major companies (KEPCO) yli 5GW capacity Main power Total capacity (MW) *Capacity from renewable (MW) Korea Hydro & Nuclear Power Nuclear and hydropower 26 138 130 Korea South-East Power Thermal 11 640 73 Korea Midland Power 8 434 20 Korea Western Power 8 909 135 Korea Southern Power 9 217 47 Korea East-West Power 9 139 64 8 others (public + private) over 5MW capacity Korea district heat corporation, Korea Water Resources corporation Posco energy, SK E&S(14,5MW), GS EPS, GS power, MPC Yulchon , Pyeongtaek energy service ! Data from companies website !

Links International Energy Agency (IEA) Photovoltaic Power Systems Programme (PVPS) http://www.iea-pvps.org/index.php?id=146 National survey reports New and Renewable Energy Center, Korea Energy Management Corporation http://www.energy.or.kr/knrec/14/KNREC140300.asp Renewable Energy Annual Report (only in korean) Renewable Energy Korea https://www.renewableenergy.or.kr/spc/stats/supply/selectSupply.do (korean) http://www.renewableenergy-korea.com/ resources/selectResourcesList.do?bbsId=BBSMSTR_000000005761 Korea Energy Management Corporation http://www.kemco.or.kr/ Korea Electric Power Corporation http://cyber.kepco.co.kr/kepco/EN/main.do